The MOC is having anti-dumping investigations on MPB imports from India, applied by Weifang Runnong. The company claims that India exported MPB on a lower price than the normal value, which has led to continuously price decreased in China’s domestic market.
Source: Pexels
An Anti-Dumping Investigation has been initiated by Chinese Ministry of Commerce (MOC) on the import of Pheonoxy benzaldehyde (MPB) originating in India in the issue number 29 on June 8, 2017.
The application was made by China’s Weifang Runnong Chemical. The company was responsible for a large share of China’s MPB output, which justifies the application for the anti-dumping investigations. After all, Weifang Runnong had a share of China’s total output of MPB by 35.8% up to 59.16% in the years from 2013 to 2016. The company is claiming, that India has exported the important raw material to China with a price under the actual value. These actions have caused a price drop of similar products in China’s domestic market, which hurt the company’s financial performance.
Beside Weifang Runnong, Jiangsu Yangnong, Hubei Qinong, and Shandong Wucheng are the leading enterprises in China’s MPB market. According to the companies, India’s cheap exports have caused the sales price of MPB go down constantly from 2013 to 2016. In that time span, the price fell down almost USD1,000 per tonne.
In this context, the top producer Weifang Runnong has suffered continual loss, negative cash flows, and falling operating rates, as workers for its MPB production line decreased by around 50% from 2013 to 2016. Hubei Qinong and Wucheng Yinuo even suspended production respectively in 2013 and 2015.
If the anti-dumping duty on the imports from India will be confirmed by the MOC, the domestic price is very likely to rise again, due to the higher production costs for pyrethroids.
MPB is listed under the Customs Import and Export Tariff of the People’s Republic of China and the tariff number is 29124990. The investigation should be concluded before June 8, 2018, and could be prolonged to December 8, 2018, in particular cases.
MPB
Meta Phenoxy Benzaldehyde is used to synthesise cyhalothrin, cypermethrin, beta-cypermethrin and other crude drugs of pyrethroids and then the synthesised products are used in the manufacture of pyrethroid insecticides and other pesticide preparations.
a kind of high efficacy, low toxicity and low residue pesticides that have enjoyed great popularity in the Chinese market in recent years. China’s demand for MPB has kept growing since 2013—the domestic consumption increased by 37.84% between 2013 and 2016. India-made MPB has so far taken up a leading position in the domestic market.
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